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Spatial Estimation of the Impact of Airport Noise on Residential Housing Prices

Summary

The paper applies spatial econometric techniques to measure the impact of airport noise on the price of single-family homes in the Zurich Airport area. We exploit a large database of geo-referenced noise measurements to investigate the reaction of prices to different noise metrics. The particular institutional setting of Zurich Airport, with changing patterns of runways configurations allows to distinguish the impact of noise at different times of the day. The use of neighborhood fixed-effects is compared to the results given by a costlier modelling strategy involving a rich set of location descriptors. The paper documents the impact of airport noise on housing prices. In the base model specification the Noise Discount Index is 0.97% with typical discounts in the range of −2% to −8%. Accounting for the spatiality of the data has little effect on the results.

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Correspondence to Marco Salvi.

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I am grateful to Patrik Schellenbauer, Philippe Thalmann, Adrian Lüscher, Gion-Reto Hassler, Alice Hollenstein and the editors for their helpful comments and suggestions. I thank the ZKB GIS-team for invaluable help with the GIS. The views expressed herein are my own and do not necessarily represent the views of the ZKB.

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Salvi, M. Spatial Estimation of the Impact of Airport Noise on Residential Housing Prices. Swiss J Economics Statistics 144, 577–606 (2008). https://doi.org/10.1007/BF03399267

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JEL-Classification

  • Q53
  • Q51
  • R31
  • L93
  • C21

Keywords

  • noise
  • airports
  • housing prices
  • hedonic pricing
  • spatial econometrics